Pennsylvania Homebuyers Respond Enthusiastically to K. Hovnanian's Deal of the Century.

LANGHORNE, Pa. -- Pennsylvanians were among about 450 people who made deals this past weekend at new-home communities offered by K. Hovnanian Homes in Pennsylvania, New Jersey and New York.

The three-day sale was part of the company's first national sales event. Called the Deal of

"The preliminary results exceeded our expectations," said Ara K. Hovnanian, president and chief executive officer of Hovnanian Enterprises, parent company to K. Hovnanian Homes. "The high level of traffic we saw in our sales offices and models over the weekend and over the past several weeks convinces us that there are interested buyers in the market today."

The company traditionally reports its financial results in geographic regions, including one made up of Pennsylvania, New Jersey and New York. The company recorded 388 gross sales in the three states during the sales event. Gross sales include contracts and deposits. By comparison, the company had 408 contracts for New Jersey, New York and Pennsylvania during its fiscal quarter ending July 31, 2007. Those figures also include homes sold in New Jersey by Matzel & Mumford, another division of Hovnanian Enterprises.

"We have been seeing traffic and sales increasing in many of our communities over the past few weeks, telling us that people are ready to buy homes again," said Barry Edelman, division president of K. Hovnanian Homes. Edelman oversees operations in eastern and central Pennsylvania. "We believe people are getting more realistic about the price of homes, and that's resulting in increasing sales. People are more interested in our inventory homes and homes already under construction that people can move into more quickly than usual. When we build a Quick-Delivery Home, we include the most popular options and upgrades. That excites customers, who quickly see the value in these homes."

Customers packed K. Hovnanian's sales centers across Pennsylvania over the weekend. Incentives varied in each community, but included combinations of price reductions, premium waivers and free upgrades. Although those wishing to buy homes have been reluctant to enter the market, the Deal of the Century brought them out droves.

"Confidence is returning," said Bruce Grosse, division president who oversees homebuilding in Ohio and the Pittsburgh area. "People have stayed out of the market for almost two years, and that has built up demand. They see that the economy continues to be good, interest rates are staying low, there are many homes to choose from and the deals have never been better. Savvy homebuyers also understand that prices have pretty much stabilized and that there are still good, conventional mortgages available. During our Deal of the Century event, we gave home buyers the best reason to purchase a new home: unbeatable quality at a once-in-a-lifetime price."

Home prices have returned to pre-sale levels in K. Hovnanian communities around the state, although buyers can still find value, said Edelman.

"Homebuyers want beautiful, practical floor plans, but they also want a quality home," he said. "We're able to show them that we've been in business since 1959 and that nine out of 10 of our customers would recommend us to their friends and families. Coupled with the features and choices we're including and the good deals we're offering, we expect people to continue to buy homes."

K. Hovnanian Homes is the sixth largest homebuilder in the nation. The company delivered 1,823 homes in New Jersey, New York and Pennsylvania during its 2006 fiscal year.

The parent company, Hovnanian Enterprises, Inc., was founded by Kevork Hovnanian in 1959 and is headquartered in Red Bank, N.J. It sold 20,201 homes nationally during Fiscal 2006, generating $6.1 billion in total revenues. The company builds planned communities that include single-family, townhomes, garden homes as well as mid-rise, high-rise and mixed-use buildings. The company also is known for its active-adult homes and its expertise in community redevelopment and environment rehabilitation. More information is available at www.khov.com or at 888-KHOV-HOME.